eBusiness Weekly
Business Writer
Platinum production in Zimbabwe was virtually flat at 241 000 ounces in the first six months of 2022 from 243 000 ounces in the comparative period, latest data shows.Zimbabwe hosts the second largest Platinum Group Metals resource in the world after South Africa, on the Great Dyke. It has three platinum-producing mines – Zimplats, Mimosa and Unki and there are other greenfield projects underway.
Figures from the World Platinum Investment Council (WPIC) quarterly global production report show that Zimbabwe’s platinum output fell 1 percent from 125 000 ounces in Q2 2021 to 124 000 ounces in Q2 2022.
“Output from Zimbabwe was stable at 124 koz, benefiting from increased concentrator capacity at Unki,” stated WPIC.
“This offset declines at Mimosa and Zimplats, which fell due to a semi-finished inventory release last year.”
This comes as Zimplats Holdings said it spent US$270,3 million in the year to June 30, 2022 on mine replacement and beneficiation projects, which remain largely on schedule.
The group last year in November approved an overall capital investment strategy for the group with a budget of US$1,8 billion to be implemented over a 10-year period.
Zimplats in its financials for year 2022 ended June 30, 2022 said the development of Mupani Mine, a replacement mine for depleted Rukodzi Mine and Ngwarati Mine which depletes in FY2025, is progressing well and on schedule.
It said that the upgrade of Mupani Mine from the current design capacity of 2,2 tonnes per annum (Mtpa) to 3,6Mtpa to replace part of the tonnage contribution from Mupfuti Mine on depletion in FY2027 was approved, increasing the estimated total project cost from US$264 million to US$386,2 million.
“A total of US$44,1 was spent on this project during the year bringing the project to date expenditure to US$190,7 million. The mine is scheduled to reach production of 2.2Mtpa in September 2024 and full production of 3,6Mtpa in August 2028,” it said.
WPIC expects the country’s platinum production to be 465 000 ounces in 2022. In 2021, the country’s platinum output stood at 485 000 ounces.
Zimbabwe is envisioning a US$12 billion mining industry by 2023. Of the US$12 billion, gold, platinum, and diamonds will contribute US$4 billion, US$3 billion and US$1 billion respectively. Chrome, iron ore and carbon steel will contribute US$1 billion while coal and hydrocarbons will contribute the same. Lithium contributes US$500 000 while other minerals will constitute US$1.5 billion.
The mining industry’s optimism for 2022 is still supported by current capacity expansion efforts and the forecast for commodity prices. The greatest challenges to the sector’s future growth are still capital restrictions and legislative changes.
As part of attempts to strengthen its coffers, which have been put under strain by declining economic conditions, the country aims to hike royalty rates on platinum producers and implement one for lithium miners as of January 1 of next year.
